The Kogan.com Ltd (ASX: KGN) share price is rocketing higher following an update on its fourth quarter performance.
In morning trade the ecommerce company's shares are up 7.5% to a new record high of $18.65.
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How did Kogan perform in the fourth quarter?
For the three months ending 30 June 2020, Kogan delivered further strong sales and profit growth compared to the prior corresponding period.
According to the release, gross sales grew by more than 95% and gross profit increased by over 115%.
Things were even better for its adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA). Kogan's adjusted EBITDA increased by more than 149% during the fourth quarter. This took its adjusted EBITDA growth to over 57% for the full year.
Pleasingly, although retail stores are now open largely as normal, this hasn't slowed Kogan's growth.
In the final month of the fourth quarter, Kogan reported gross sales of more than $94 million, gross profit of more than $17 million, and adjusted EBITDA of more than $7.9 million.
As a comparison, during the first two months of the fourth quarter, Kogan's average run-rate of adjusted EBITDA was $7 million per month.
At the end of the financial year Kogan's cash balance stood at $147 million. This includes the $100 million raised from its institutional placement, but not the $20 million from its share purchase plan.
Total inventories were $113.1 million at the end of the period, with $80.6 million in its warehouse and $32.5 million in transit.
What were the drivers of this growth?
The shift to online shopping and another solid increase in customer numbers helped drive this strong quarterly result.
Kogan's active customers grew to 2,183,000 at the end of June, with net 109,000 active customers added during the month.
Founder and CEO of Kogan, Ruslan Kogan, commented: "In early July we celebrated four years since listing the Company on the ASX, and we are now proud to have delivered four consecutive years of significant growth in sales and earnings. Our business is booming as more customers than ever choose Kogan.com."
